What Is BNB?

 What Is BNB?

Inaugurated in July of 2017, Binance stands as the paramount cryptocurrency exchange globally, distinguished by its commanding daily trading volume. Binance, with its overarching mission, endeavors to elevate cryptocurrency exchanges to the forefront of the global financial landscape. The nomenclature of Binance encapsulates the essence of this novel paradigm in global finance — Binary Finance, succinctly referred to as Binance.

Beyond its prominence as the preeminent global cryptocurrency exchange, Binance has unfurled an extensive ecosystem replete with functionalities designed to cater to its user base. The expansive Binance network encompasses the Binance Chain, Binance Smart Chain, Binance Academy, Trust Wallet, and Research projects. All these facets intricately leverage the capabilities of blockchain technology, heralding a new epoch in financial systems. BNB, a pivotal component, indispensably contributes to the seamless operation of various sub-projects within the overarching Binance ecosystem.

Who Are the Founders of BNB?

Changpeng Zhao, serving as the luminary founder and CEO of Binance, commenced his professional journey in 2001 by assuming the pivotal role of head of tradebook futures development at Bloomberg. A four-year tenure with Bloomberg paved the way for his partnership with Fusion Systems.

Delving into the realms of blockchain technology and cryptocurrencies since 2013, Zhao assumed the mantle of development head at Blockchain and, in 2015, established BijieTech. The pivotal moment arrived in 2017 when he formally ushered Binance into existence, becoming the stalwart CEO steering its course ever since.

He Yi, a co-founder and the adept chief marketing officer at Binance, embarked on her career odyssey as a TV anchor and presenter with China Travel TV in 2012. In 2014, Yi co-founded OKCoin, reigning as the largest fiat-to-crypto exchange in China at that juncture. The convergence of forces with Changpeng Zhao in 2017 marked the inception of their collaborative endeavor, birthing the global crypto titan — Binance.

What Makes BNB Unique?

Binance stands as an unparalleled ecosystem, woven intricately through decentralized, blockchain-based networks. Emerging as the premier cryptocurrency exchange across several nations, Binance's affiliated entities are capturing substantial attention.

A paramount competitive edge in Binance's arsenal lies in its unwavering commitment to evolution. Commencing its journey solely as a cryptocurrency exchange in 2017, Binance has since diversely expanded its offerings into various domains. As articulated on the company's official website, the grand vision is to metamorphose into the quintessential infrastructure services provider for the entire blockchain panorama.

The introduction of BNB marked a pivotal moment, as the coin witnessed heightened investor enthusiasm, experiencing a noteworthy surge in early 2021 that propelled it into the focal point of institutional investors.

Strategic maneuvers, exemplified by BEP-95, have augmented the already deflationary tokenomics, rendering BNB even more deflationary. In the wake of this proposal, gas fees on the Binance Smart Chain witnessed a decline, with the network orchestrating the burning of a portion of fees to fortify decentralization. This proposal draws inspiration from Ethereum's renowned EIP-1559.

These proactive measures have fortified Binance against sundry protocol exploits on the Binance Smart Chain, including a $200 million exploit targeting Pancake Bunny and multiple incursions into Cream Finance. Despite these challenges, users gravitate toward Binance, enticed by its economical fees and the plethora of lucrative meme coins nestled within its ecosystem.

What Is BNB’s Auto Burn?

In the realm of the cryptocurrency industry, a coin incineration stands as a deflationary maneuver employed to permanently extricate coins from the circulation matrix. The majority of cryptographic ventures, Binance included, routinely engage in this process to sustain the intrinsic value of their digital assets, concurrently imparting a deflationary ripple.

Binance, the crypto exchange in question, inaugurated this initiative in the latter part of 2017. As of the latest quarterly incineration, it has effaced a formidable sum, surpassing 38 million tokens. The ambitious trajectory set by the crypto exchange aims to obliterate up to 100 million BNB tokens through these quarterly conflagrations, constituting a substantial 50% of its extant circulating supply.

BNB employs a dual-faceted coin immolation methodology. The initial facet orchestrates the obliteration of a fraction of tokens expended as transaction fees on the BNB Chain. The second facet manifests in the form of scheduled quarterly BNB immolation events.

Historically tethered to the revenue derived from the Binance centralized exchange, the quarterly incineration paradigm underwent an evolution with the introduction of the BNB Auto-Burn program. This revamped approach calculates the quantum of tokens to be consigned to the inferno via a formula contingent on the aggregate number of blocks generated on the Binance Smart Chain. The average dollar-denominated valuation of BNB throughout the quarter further influences this computation.

Up until the penultimate month of July in the year 2022, Binance orchestrated a total of 20 BNB coin immolation events. The grand tally reveals the obliteration of precisely 38,683,447.66 BNB tokens, effectively curtailing its initial 200 million supply by a consequential 19.34%.

How Many BNB Are There in Circulation?

In the cryptocurrency realm, there exists an initial ceiling of 200 million BNB coins, with 168,137,036 currently circulating as of September 2021.

Binance diligently undertakes a quarterly ritual of reducing the BNB supply, aspiring to halve the total count to 100 million BNB. The 16th quarterly event unfolded on July 18, 2021, marking a value of $390 million in BNB at the time of its incineration. Notably, April 16, 2021, stands as the date of the most opulent burn, torching nearly $600 million in BNB valuation.

The Binance whitepaper meticulously outlines the dispersion strategy of the BNB coins. Precisely half of the maximum supply was earmarked for the initial coin offering (ICO) and the coin's public sale. The ICO, conducted in July 2017 shortly after the exchange's inauguration, garnered $15 million in funding with a BNB price of $0.10 during the ICO. With the contemporary BNB valuation, this translates to an astronomical 4200X return on investment (ROI). Another 40% of the overall supply, approximately 80 million BNB coins, found their way into the hands of the founding members and the team. The residual 10% of the maximum supply was judiciously partitioned among angel investors.

How Is the BNB Network Secured?

Commencing its journey, the BNB emerged as a conventional ERC-20 token dwelling within the Ethereum blockchain. Progressing in its evolutionary trajectory, the enterprise ushered in its proprietary blockchain, initiating the issuance of tokens from the esteemed Binance blockchain, fortified by the Tendermint byzantine-fault-tolerant (BFT) consensus mechanism.

In stark contrast to ERC-20 tokens, which hinge on the proof-of-stake (PoS) consensus, a paradigm that bestows remarkable scalability and affords the creation of ingenious smart contracts, the Binance blockchain, distinctively, refrains from embracing the realm of smart contract functionalities. As opposed to PoS, the Bitcoin blockchain, underpinned by the formidable proof-of-work (PoW) consensus, reveals its inherent limitations, characterized by significant resource consumption in both electrical power and computational capacity.

Where Can You Buy BNB?

Functioning as the exclusive utility token affiliated with the Binance exchange, the most direct avenue for acquiring BNB coins involves their procurement through the Binance platform. This primary exchange boasts the most extensive array of trading pairs involving BNB, coupled with the most favorable trading rates for this particular digital asset. With the advent of Play2Earn games, there has been a notable surge in interest regarding the BNB to PHP price.

For real-time assessment of the BNB's valuation in your preferred fiat currency, one may conveniently utilize CoinMarketCap's conversion tool directly accessible from the BNB currency page. Alternatively, engage with the designated exchange rate conversion page for a comprehensive evaluation. Prevalent BNB price pairings encompass BNB/USD, BNB/GBP, BNB/AUD, BNB/CNY, BNB/JPY, and BNB/EUR.

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